Top Ten Net Buys: The top net buys of Hong Kong stocks by southbound capital included XIAOMI-W, PING AN, and BABA-W, with significant inflows of HK$3.148 billion, HK$2.881 billion, and HK$2.016 billion respectively.

Top Ten Net Sells: The leading net sells were CHINA MOBILE, SMIC, and CHINAHONGQIAO, with outflows of -HK$2.402 billion, -HK$696 million, and -HK$566 million respectively.

Short Selling Data: The report included short selling data, indicating varying ratios for each stock, with notable short selling amounts for both net buys and sells.

Data Source Note: The data presented is estimated by Soochow Securities based on changes in shareholdings and average transaction prices, rather than being published by the exchange.

Morgan Stanley's 2026 Outlook: The report provides forecasts for the price-to-book (PB), return on equity (ROE), and dividend yield of various Chinese banks' H-shares for the year 2026.

Bank Performance Metrics: Key banks such as ABC, ICBC, and CCB show varying PB ratios, ROE percentages, and dividend yields, with ICBC having the lowest PB at 0.48x and CM Bank leading in ROE at 12.6%.

Short Selling Data: The report includes short selling statistics for each bank, indicating significant short selling activity, particularly for PSBC and CM Bank, with ratios of 51.978% and 45.638%, respectively.

Market Reactions: The stock prices of the banks reflect mixed performance, with some banks experiencing slight increases while others show declines, highlighting the volatility in the Chinese financial sector.

Morgan Stanley's 2026 Outlook: The report provides a ranking of H-shares for Chinese banks, indicating a preference for several banks with "Overweight" investment ratings.

Top Ranked Banks: The top banks listed include Minsheng Bank, CITIC Bank, Bank of China, CCB, and PSBC, all rated "Overweight" with specific target prices.

Short Selling Data: The report includes short selling statistics for each bank, highlighting the amount and ratio of short selling activity.

Underperforming Banks: Some banks, such as Bank of Communications, CEB Bank, and CQRC Bank, received "Underweight" ratings, indicating a less favorable outlook.

Ping An Life's Stake Increase: Ping An Life has increased its stake in ABC (01288.HK) by purchasing 95.582 million H shares at an average price of HKD5.7854 per share, totaling approximately HKD553 million.

New Ownership Percentage: Following this acquisition, Ping An Life's ownership in ABC's H shares has risen from 19.79% to 20.1%, marking a significant increase in disclosable stakes.

Market Overview: The HSI fell 21 points to 26,316, while the HSCEI and HSTECH also experienced declines, with total half-day turnover reaching $155.515 billion.

Stock Movements: BLUEFOCUS and KUAISHOU saw significant gains of 9.5% and 9.7% respectively, while major automakers like GEELY AUTO and BYD COMPANY faced losses between 2.4% and 3.1%.

Oil Sector Impact: Concerns over Venezuela's situation led to declines in oil producers CNOOC and PETROCHINA, which dropped 3.5% and 4.3% respectively.

Financial Sector Performance: HSBC and AIA inched up slightly, while Chinese insurers like PING AN and CPIC saw gains of over 3%, contrasting with declines in major Chinese banks.